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Bitget Token (BGB), the utility coin of cryptocurrency exchange Bitget, has reached a new historic high after gaining 18% in the past 24 hours. This historic high for BGB comes despite the broader market experiencing a significant decline.
With this development, the Token continues to maintain its position as one of the best performing coins of 2024. These are the factors that have led to the recent price increase.
Bitget Token Volume Increases Tenfold Amid Optimistic Market Context
On December 23, BGB’s trading volume was below 100 million USD. According to Santiment, this number has increased tenfold, now surpassing $1 billion. The sharp increase in volume shows that the number of buyers and sellers participating in this cryptocurrency is increasing significantly.
Typically, a decline in volume signals reduced interest in an asset. As volume decreases, the ability to maintain an uptrend will also decrease, and prices may instead move lower.
However, with the recent price increase, demand for Bitget Token has clearly increased. If trading volume continues to escalate along with price, BGB’s value could maintain an upward trend.
Following the development, the Bitget Token price climbed to $6.55 but has now dropped to $6.40. Despite the slight adjustment, 100% of Holder Tokens are profitable.
To some, this peak in BGB could be a sign that the market has peaked. However, on-chain data from Santiment suggests that may not be the case. One indicator that supports this hypothesis is the long/short Market Value and Perceived Value Difference (MVRV).
Long/Short MVRV checks whether Long-Term Holders have greater unrealized profits than Short-Term Holders. When the index rises and has a positive reading, long-term Holders prevail and the market sentiment is bullish.
Conversely, a decline in the index or a negative reading indicates short-term Holder dominance. But this is typical of a market downturn. At the time of writing, the long/short MVRV is close to 320%, suggesting that the Token’s price is likely to reach a new peak regardless of any correction.
BGB Price Prediction: $6 Is Not The End
On the daily chart, BGB price continues to form higher lows and higher highs. As a result, the Awesome Oscillator (AO), which measures momentum, has continued to rise.
Typically, when the AO index is positive, momentum is optimistic. On the contrary, a negative reading of AO indicates a negative outlook. As the image below shows the former, the value of altcoins could continue to increase.
If confirmed, the altcoin could surpass the candle’s peak at $6.58 to $7. In a highly optimistic market scenario, the value could skyrocket to $10. However, if some holders decide to sell, BGB’s ability to reach a new high will be broken, which could cause the token to drop to $3.64.
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